Refinance Convetional to Commercial Loan?

[W. Alex Benitez]

Hello guys and girls…I need help with refinancing and would like your thoughts and comments.

The property I am considering refinancing is a 4-plex purchased back in April of 2016.  I understand that in order to refinance, the season period is 1 year so am trying to be proactive and preparing myself. I used conventional lending with a balance of 184k remaining on the note.The property and comps in the area for 4-plexes is around 310K.

Since the purchase I have rehabbed 1 unit and in the process of rehabbing another unit in May.  My goal is to rehab the upcoming unit, get it rented then refinance and leverage for other opportunities.

Question: Can I refinance a conventional load over to a commercial load and what are the benefits? Would a 4-plex qualify for a commercial loan or is it only 5+?

Ideally, would like to refinance to a commercial load and create an LLC for asset protection.

Thoughts and comments appreciated…

[Harjeet Bhatti]

There are benefit to finance under commercial loan which you mention  under llc  for asset protection. but negative impact will be higher rate. You have to count+ and - which one is  higher for your commercial loan.